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New BMBE Implemeting Rules and Regulations

New BMBE Implemeting Rules and Regulations

The Barangay Micro Business Enterprises (BMBEs)  Act of 2002 encourages the formation and growth of barangay micro business enterprises by granting them incentives and other benefits.

The Act was signed into law by  former President Gloria Macapagal-Arroyo on November 13, 2002. Its implementing Ruels and Regulations (IRR) which was issued on February 7, 2003, as DTI Department Administrative Order No. 1, Series of 2003, was published twice in the February 11 and  26, 2003 issues of the Manila Bulletin.

A BMBE is definedas any business enterprise engaged in production, processing, or manufacturing of products, including agro-processing, as well as trading and services , with total assets of not more than P3 million. Such assets shall include those arising from Loans but not the land on which the plant and equipment are located.

 For the purpose of the Act, “services” shall exclude those rendered by any one, who is duly licensed by the governmebt after having passed a government licensure examination, in connection with the exercise of one’s profession (e.g., Accountant, Lawyer, Doctor, etc.).

The DOF Department Order No. 17-04 also provides that, an enterprise can  only qulaify for registration if its not a branch, subsidiary, division or office of a large scale enterpise and its policies and business modus operandi are not determined by a large scale neterprise or by persons who are not owners of the enterprise (i.e., franchises).

Source: 2010 R.A 9178 BMBE Act

 Here’s the copy of the DTI DAO No. 16-01: Amending Article II, DAO No. 01 S. of 2003, on the IRR of R.A. No. 9178, otherwise  known as the Barangay Micro Business Enterprises Act of 2002 and Rule 4. Sections 1(b) ii and Sec 3 of the IRR of RA 10644, otherwise known as the Go Negosyo Act.

DAO-16-01_cc